International oil prices dipped on Tuesday, marking the first decline in three trading sessions. The drop, however, was relatively modest.
Yesterday, the Organization of the Petroleum Exporting Countries (OPEC) lowered its projections for global oil demand growth for this year and next. Following this, the International Energy Agency (IEA) revised its demand forecast downward today.
The IEA reduced its forecast for global oil demand growth this year from 1.03 million barrels per day to 730,000 barrels per day.
The growth estimate for next year was also lowered to 690,000 barrels per day.
Notably, the IEA’s adjustment for this year’s oil demand growth was 300,000 barrels per day, which is double OPEC’s 150,000 barrels per day reduction announced the previous day.
While international oil prices inched up slightly following OPEC’s downward revision of demand outlook the previous day, they ultimately succumbed to pressure from the IEA’s reduced demand forecast.
Brent crude, the global benchmark, settled at $64.67 per barrel for June delivery, down $0.21 (0.32%) from the previous session.
Similarly, West Texas Intermediate (WTI), the U.S. benchmark, saw its May contract slip by $0.20 (0.33%), closing at $61.33 per barrel.
